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Fruity Delight produces two products – fruit juice and fruit pulp – from a joint process. The joint cost of production is $28, 000. 500 kg of fruit pulp can be sold at split-off for $5 per kg; or processed further at an additional cost of $7, 500 into 750.00 kg of jam and be sold for $8.00 per kg. 10, 000 litres of fruit juice can be sold at split-off for $2.70 per litre; or processed further at an additional cost of $3500.00 into 2000.00 litres of fruit juice concentrate and be sold for $30 per litre. What is the difference in profit if the company decides to process further fruit pulp instead of selling it at split-off? Please put a negative sign to indicate a decrease and round your answer to two decimal places if necessary. 2$

Fruity Delight produces two products – fruit juice and fruit pulp – from a joint process. The joint cost of production is $28, 000. 500 kg of fruit pulp can be sold at split-off for $5 per kg; or processed further at an additional cost of $7, 500 into 750.00 kg of jam and be sold for $8.00 per kg. 10, 000 litres of fruit juice can be sold at split-off for $2.70 per litre; or processed further at an additional cost of $3500.00 into 2000.00 litres of fruit juice concentrate and be sold for $30 per litre. What is the difference in profit if the company decides to process further fruit pulp instead of selling it at split-off? Please put a negative sign to indicate a decrease and round your answer to two decimal places if necessary. 2$

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 66P: Sell at Split-Off or Process Further Eunice Company produces two products from a joint process....
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Fruity Delight produces two products – fruit juice and fruit pulp – from a joint process. The joint cost of production is $28, 000. 500 kg of fruit pulp can be sold at split-off for $5 per kg; or processed further at an additional cost of $7, 500 into 750.00 kg of jam and be sold for $8.00 per kg. 10, 000 litres of fruit juice can be sold at split-off for $2.70 per litre; or processed further at an additional cost of $3500.00 into 2000.00 litres of fruit juice concentrate and be sold for $30 per litre. What is the difference in profit if the company decides to process further fruit pulp instead of selling it at split-off? Please put a negative sign to indicate a decrease and round your answer to two decimal places if necessary. 2$
Transcribed Image Text:Fruity Delight produces two products – fruit juice and fruit pulp – from a joint process. The joint cost of production is $28, 000. 500 kg of fruit pulp can be sold at split-off for $5 per kg; or processed further at an additional cost of $7, 500 into 750.00 kg of jam and be sold for $8.00 per kg. 10, 000 litres of fruit juice can be sold at split-off for $2.70 per litre; or processed further at an additional cost of $3500.00 into 2000.00 litres of fruit juice concentrate and be sold for $30 per litre. What is the difference in profit if the company decides to process further fruit pulp instead of selling it at split-off? Please put a negative sign to indicate a decrease and round your answer to two decimal places if necessary. 2$
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